Beijing Introduces New Housing Policy: No Purchase Limits for Eligible Families in Areas Beyond the Fifth Ring Road

On August 8, 2025, the Beijing Municipal Commission of Housing and Urban-Rural Development, in conjunction with the Beijing Housing Fund Management Center, issued a new policy aimed at optimizing and adjusting the city's real estate regulations. This policy takes effect on August 9, 2025, and is expected to significantly impact the housing market, particularly in areas beyond the fifth ring road.

New Policy Removes Purchase Limits for Families Beyond the Fifth Ring Road

The policy states that eligible families who meet the conditions for purchasing commercial housing in Beijing will no longer be subject to purchase limits when buying properties outside the fifth ring road. This includes both new and second-hand housing.

Eligible families include Beijing residents and non-residents who have continuously paid social insurance or individual income tax for at least two years. The policy also clarifies that single adults will be treated as households under the purchase restrictions.

However, the existing purchase restrictions for properties within the fifth ring road remain unchanged. Beijing residents are still limited to two purchases, while non-residents who have paid social insurance or taxes for three years or more are restricted to one purchase within the fifth ring road.

Housing Fund Support Expanded to Boost Affordability

The new policy also introduces four key measures to enhance support from the housing fund:

1. Expanded First-Time Home Purchase Support: Applicants who have no property in Beijing but have one fully settled housing fund loan nationwide will now be classified as first-time buyers instead of second-time buyers. This change could reduce the maximum down payment by up to 600,000 RMB and lower monthly payments by up to 2,530 RMB for a 10 million RMB loan over 30 years.


2. Enhanced Second-Time Home Purchase Support: The maximum housing fund loan for second-time buyers has been increased from 6 million RMB to 10 million RMB. Additional benefits include up to a 400,000 RMB increase in loan amounts for those who qualify for green building incentives or multi-child family policies, with a maximum loan of 14 million RMB.


3. Increased Loan Amount per Year of Housing Fund Contributions: The loan amount per year of housing fund contributions has been raised from 1 million RMB to 1.5 million RMB. For a 12 million RMB loan, the required contribution period is reduced from 11 years and one month to 7 years and one month.


4. Support for Using Housing Fund for Down Payment and Loan: The policy now allows eligible individuals to use their housing fund to pay the down payment on a new home while simultaneously applying for a housing fund loan. This change is expected to ease the financial burden for first-time homebuyers and improve accessibility to housing.

Conclusion

The new policy marks a significant step toward making housing more affordable and accessible, particularly for those living in areas beyond the fifth ring road. By removing purchase limits and increasing housing fund support, the government aims to promote a more balanced and sustainable housing market. While the policy may not immediately ease pressure in the inner city, it is a positive development for families seeking to improve their living conditions in the suburbs.